Target Case Competition Executive Summary

We were challenged by the On Target Club Case Competition to develop a marketing

strategy to improve the probability of success by carefully examining millennials, consumer

behavior, store formats, and possible marketing strategies. We focused our research on college

campuses as we felt we were better able to give insight as part of the target market. Currently,

Target only operates one main store format, in the role of a power retailer, thus leaving out

certain demographic groups based on location. Our target market for this store format is

millennial, college students in densely populated areas. This market segment are especially loyal

to brands, focused on sustainable resources, seek value in their purchasing, and expect great

customer service. They also account for 30% of all US retail sales. 81% of these sales are still

spent in brick & mortar stores. By capturing this audience in the early stages, future loyalty will

be built.

According to our research and experiences, we determined the primary departments of

each Target Express. This consists of: produce/grocery, electronics, limited apparel, sporting

goods, health & beauty products, and home goods. Most of these categories have the benefit of

keeping low costs for guests, increased convenience, and high profit margins. Omni-channel

retailing is another strategy to drive sales and add flexibility to highly variable millennial

lifestyles. Flexible fulfillment, Ship from store, and Target subscriptions will play big roles in

accomplishing this goal. Carrying fewer item variety will make in-stocks a priority, and increased

data monitoring for these stores will be a necessity.

Marketing strategies such as partnerships with athletic departments to offer unique-

themed apparel and having bus systems available for transportation highlight our

recommendations. Increasing the awareness of Cartwheel is a necessity to capture market share.

Our ultimate goal is to increase the exposure of the Target Express store format, and to educate

consumers of its value to complement each consumer’s lifestyle.